The Real Work Begins AFTER the Contract is Accepted!
There is too much buzzing about buyers that think that they don't need a buyer's agent to represent them. Even more, they think that they can ask the seller to credit the buyer at closing because they are not using an agent to help them buy the house. Whoa, wait a minute. First of all, don't believe everything that you read online. When the internet tells you that all commissions are negotiable, this is not one of those cases.
The buyer does not have the authority to negotiate the commission that the seller pays. That was determined at the time of the LISTING with their broker and cannot be renegotiated when a buyer decides to offer on the property.
So whether or not you choose to have representation as a buyer, the seller has a contract with the broker. Now the listing agent, even if not representing the buyer, has TWICE the work in keeping the transaction together. In my opinion, the real work begins after the contract is accepted.
Buyer agents do not just show you homes. Do you think that after the offer is accepted that they put their feet up and relax? Nope! Here are some of the things that a great buyer's agent does AFTER the sellers accept your offer (behind the scenes that you may not ever know about).
1. Turn in the file to all required parties, including the buyers' lender. The lender needs the executed contract in order to lock the interest rate and order the appraisal.
2. Provide the earnest money to the listing broker. This is required to be given within 5 business days of acceptance in Iowa.
3. Provide a list of inspectors and insurance companies if requested by the buyer. The buyer has a definitive amount of time to satisfy and release these contingencies, typically it is 7-10 business days after the acceptance. If the buyer is unrepresented and misses that deadline, the contingency is released and the seller is not required to repair anything that is requested.
4. After inspections are completed, the buyer's agent will submit a repair request and negotiate a credit or for repairs to be done prior to closing by a qualified contractor if needed. This is paperwork that the buyer is not able to access and complete without an agent.
5. Follow up with listing agent regarding the title work. Also, work with the closing company to insure that all of the buyer's information is correct on all of the legal paperwork that is prepared by the seller's attorney.
6. Provide utility company information to the buyer so that the buyer is able to transfer the utilities and avoid costly disconnection/re-connection fees. It is going to be winter soon. You would not want the pipes to freeze!
7. Arrange for a final inspection of the property once the seller's belongings have been removed. And negotiate any repairs needed or missing items, if necessary. The buyer's agent will also have the invoices from the required repairs and coordinate with the home inspector if there needs to be a re-inspection.
Overall, the buyer agent serves as a transaction manager between the listing broker, the lender, the closing company, and the buyer. There are many contingencies in the contract that are time sensitive. If a buyer misses a deadline, the home can go back on the market and be sold to another buyer. In a hot market, there may be a backup offer with a buyer that is hoping that you will drop the ball.
The agents are the reason that the sale closes. It takes a lot of negotiation and finesse to get everyone to the closing table as happy as they were when the offer was accepted.
I would love to meet with you to discuss how I can represent you at no cost. I provide a FREE homebuyer consultation to go over the process of purchasing a home in today's market and to determine if we would like to work together to make your dream a reality.
Keep smiling!
Karen
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